Skip to main content

How this HVAC manufacturer saved on their replacement costs with photo documentation | LoadProof

 


1. Introduction

LoadProof is a Centralized Enterprise Photo Documentation System (patent pending) for Supply Chain. Recently a HVAC Manufacturer implemented LoadProof in their seven facilities. This document describes the benefits that were accrued and the associated dollar savings.

This HVAC Manufacturer is a global corporation that designs, manufactures and sells heating, ventilation and air conditioning (HVAC) products, systems, parts and services for commercial buildings. Since 2006, McQuay has been a subsidiary of HVAC Manufacturer Industries, Ltd. McQuay world headquarters are located in Minneapolis, Minnesota, United States. Products are sold by a global network of sales representatives and distributors.

Since its founding in Osaka in 1924, this HVAC Manufacturer has expanded business focused primarily on-air conditioning to over 150 countries. Aiming to help solve social and community problems and grow business, this HVAC Manufacturer strives to meet expectations and maintain trust worldwide as a global company that supports human health and comfort while creating new value for air and the environment.

2. What is the Problem?

This HVAC Manufacturer being an industrial products manufacturer had all the challenges a typical industrial products manufacturer would have in their Supply Chain. HVAC Manufacturer manufactures, assembles and ships all HVAC systems on time and to the customer’s site in perfect condition so the deployment of these HVAC systems can be done smoothly as part of construction or starting up new facilities that is already going on. If you really think about it, these are products that are purchased out of somebody’s capital projects and budgets. So, somebody is investing big time constructing large buildings that need these HVAC systems.  So, it is very important for HVAC Manufacturer Warehouse Manager to do his part of the job thoroughly and deliver them on time.

Usually when a customer buys HVAC Manufacturer’s HVAC system, it is for another large building that is being constructed. There are several other projects that are going on in parallel to get the construction of the building completed as per the plan. So, it is very important for HVAC Manufacturer to absolutely get the HVAC system at the construction site on time otherwise the construction of the building could be delayed. This not only increases the timeline, but also increases the cost of the overall construction because all the other vendors that have dependency on the completion of the HVAC installation part of the project needs to wait, which directly contributes to the increase in the overall cost of the construction project. Sometimes there are also penalty clauses if the product does not arrive on time at the right place.

This HVAC Manufacturer personnel did everything right to make sure the HVAC systems are packed perfectly, with all the stretch wrapping, dunnage and any other tight packing required. However, the large HVAC systems would arrive at the construction site with scratches, damages, sometimes even missing parts. So this HVAC Manufacturer warehouse personnel started taking Photos in order to prove that they did their job right as Photos are worth thousand words, so later in the case of damage or anything else that happened to the shipment, this HVAC Manufacturer can go back to the customer and or carrier and show them the Photos they took, so they can prove that they did their job right and anything happened after the product let their facility it was not their fault.

There were a couple of options to take pictures,

1. Use the old school digital camera
2. Use warehouse personnel smart phones,
There were personnel taking pictures but there was no central system to store the photos that were taken.

The lack of a central system, lack of an easier way to retrieve the Photos and the lack of an easier way to share the Photos, all made it very difficult for this HVAC Manufacturer to prove that they did their job right. The only option for this HVAC Manufacturer was to eat the cost, meaning if any damage or any part was missed, this HVAC Manufacturer would just blindly replace it for free, absorbing the cost.

By doing this, not only this HVAC Manufacturer was losing money, but also this HVAC Manufacturer was losing its reputation. Hence there was this absolute need to find a solution as soon as possible.

Click here to continue reading this article.

Comments

Post a Comment

Popular posts from this blog

Picture Documentation for Freight Claims White Paper – Part I | LoadProof

  INTRODUCTION This document describes the benefits of an effective Picture Documentation System(PDS) that helps with getting Freight Claims Paid faster. An effective pictures documentation system helps with 1 – Get Freight Claims paid much faster by making pictures available quickly and easily, 2 – Provides visibility to the damages through pictures. The visibility gained provides insight into the handling mistakes made while the orders are fulfilled, so that the parties can determine and establish accountability boundaries and get the shipper paid. BACKGROUND What are Freight Claims? A freight claim is a legal demand by a shipper or a consignee to a carrier for financial reimbursement for a loss or a damage of a shipment. Freight Claims are claims submitted by manufacturers/suppliers/shippers to transportation vendors and or carriers, when the goods the Supplier shipped did not arrive at the destination in a pristine state. Instead it arrived as damaged, the packaging was damaged...
Post a Comment
Read more

3PL Panacea: The Flexible Mobile Supply Chain Platform | LoadProof

  The third-party logistics (3PL) business is tough, because it covers a wide gamut of service offerings, that include some combination of: Just move my boxes and/or pallets. Move my boxes and/or pallets and store them in your warehouse. Move my boxes and/or pallets and operate my facility. Own all the labor and activities in my facility. Offer all distribution services for my product (All I will do is download my orders into your system/supply chain). I’ve even run into more complicated models of operation, including both tightly and loosely coupled models.  In a tightly-coupled model, the supply chain systems of the 3PL, including orders, inventory, transportation, advanced shipment notices, purchase orders, and more, are tightly integrated into the shipper’s supply chain systems. All this information seamlessly flows between both supply chain systems of the 3PL and the shipper. They stay in synch with each other and the parties perform the functions in their respective syst...
Post a Comment
Read more

Emotional Investment Leads to Success | LoadProof

  It’s been said that hindsight is 20/20… and it’s certainly true that taking a moment to ponder the outcomes of the projects and activities of the year is useful. I’ve had wild successes, as well as some equally fantastic failures. As a project manager, I’ve always believe that if my team did not accomplish its goals, it pointed to a failure on my part.  Learning from both the ups and the downs is the first brick in building a firm foundation that will allow an organization to stand the test of time even as change accelerates everything around us. Technology is evolving quickly and the world is getting smaller. In the best organizations, the work environment is becoming inter generational and multicultural. Some people are even positing that robots and artificial intelligence (AI) will reform the workforce even more.  How can you build a great team even amidst change? How do you avoid failure as much as possible? How do you turn adversity into opportunity in those moment...
Post a Comment
Read more